Ethereum Staking Reaches Record High Amid Regulatory Clarity

The amount of Ethereum staked on the network recently surpassed a record high of 35 million ETH (worth approximately $90 billion). This milestone, achieved just days after the U.S. Securities and Exchange Commission (SEC) provided clearer guidance on staking activities, represents 28.3% of the cryptocurrency’s circulating supply, according to data scientist Hildebert Moulié.

Market Response

Finance research analyst Carlos Guzman of GSR described the development as an “optimistic” sign, noting it aligns with growing market expectations for Ethereum and suggests increased confidence from holders.

Although Ethereum’s price recently dipped around 5.4% to approximately $2,500, the record staking level underscores a strengthening conviction within the market.

Regulatory Influence

The timing of this surge closely follows the SEC’s statement clarifying that staking activities do not constitute securities transactions. This move is expected to encourage further institutional participation.

While the SEC previously held a different view on proof-of-stake assets, the recent statement opens the door for asset managers and institutions to potentially integrate staking rewards into exchange-traded funds (ETFs).

Network Impact

Alongside the record staking amount, the number of validators securing the network reached a new high of 1.1 million. This indicates broader participation in Ethereum’s proof-of-stake consensus mechanism.

Ethereum relies on validators locking capital to propose and attest to new blocks, differentiating it significantly from Bitcoin’s proof-of-work system.

The high amount of staked ETH also influences the asset’s issuance rate, with mechanisms in place to cap potential inflation. Even if all circulating ETH were fully staked, the maximum inflation rate would be limited.